5 Biggest Failed Companies Due To Poor Management

4. Enron Corporation

Asset Value at Time of Bankruptcy: $66 billion

Enron Corporation was an American company that traded in energy and commodities. The firm was set up in 1985 and was headquartered in Houston, Texas.

Enron Corporation’s mismanagement, or what can simply be dubbed as good old accounting fraud, is now taught as an example in business schools of what not to do if you want to avoid bankrupting your company and going to jail. These practices can simply be described as inflating revenue, recording future profits in today’s books, and creating special entities to sell your debt and thus reduce the liabilities on your balance sheet.